Module 1

Module 1: Introduction to concepts (6 hours)

1. Introduction to the Course: Overview of Syllabus Course Materials
2. Introduction to fraud: Definition of fraud, Types of fraud RM:
3. Elements of fraud, the fraud triangle, Fraud diamond, Red flags

Module 2

Module 2: Frauds and case studies (6 hours)

1. Case Discussion 1
2. Frauds against the organization.
3. Case Discussion 2.
4. The fraudster

Module 3

Module 3: Corporate Governance (6 hours)

1. Corporate Governance.
2. Case Discussion 3.
3. Corporate governance and fraud prevention.

Module 4

Module 4: Models and Frameworks for fraud prevention (6 hours) 

1. Beneish model; Altman Score. 
2. The internal control framework; COSO framework; internal financial controls. 
3. The legal environment. 
4. Case Discussion 4 & 5. 
5. Fighting corruption: Bribery, law against corruption, developing an anti-corruption culture. 

Module 5

Module 5: Fraud Investigation and Corporate Ethics (6 hours)

1. Fraud investigation: Red flags, indicators of fraud and tools to prevent and detect fraud.
2. Whistle Blowing.
3. Industry related fraud opportunities.
4. Role of Ethics.

Course Description

Internal control and checks date back to ancient times as back as 300 BC when Chanakya, also known as Kautilya introduced the concept of auditing in his book Arthaniti. In the ancient civilisations of China, Egypt and Greece, it was found in the form of ancient checking activities. In 1528 AD, Birbal gave his ‘Independent opinion’ to emperor Akbar on several complex issues with evidence. The focus on internal audit and compliance concentrating on the accuracy of record keeping has gradually shifted to internal control in the 1990s due to the international corporate scandals and frauds coming to light with the growth of the corporate form of organisation. The demand for sound corporate governance has moved from reactive mode to the need for corporates to deal fraud proactively. Companies, management and auditors are responsible for safeguarding the assets of the company. Companies have to ensure that their internal control systems are equipped to deter, detect and where required, prove fraud. This course is an attempt to introduce the students to the concept of internal control in a corporate environment and also to enable them to identify and defend themselves against fraudulent and corrupt practices within and against their future organisation.

Course Outcomes& Learning levels

1. Achieve a foundation understanding of fraud and internal control in a corporate environment
2. Identify common red flags of fraud and the lacunae in the internal control systems that may expose companies to fraud
3. Identify the legal requirements pertaining to corporate governance and internal control
4. Understand key challenges, the role of ethics, and tools and techniques in fraud prevention and detection.

Evaluation Pattern

*Based on assignments / Tests / Quizzes / Case Studies / Projects / Term paper / Field visit report.

Study material will be given to students during class.